Net Operating Profit After Tax (NOPAT) is the amount of money a company earns from its main activities after paying taxes but before paying interest. It shows how profitable a company is without considering how it finances its operations. It is calculated by multiplying the earnings before interest and taxes (EBIT) by one minus the effective tax rate. The formula for NOPAT is:
NOPAT = EBIT * (1 - Effective Tax Rate)
Where:
- EBIT is R0004,
ebit
- Effective Tax Rate is R0033,
eff_tax_rate